KEPCO operating profit falls 70.9% to 1.64 trillion won in third quarter

Key Facts

Korea Electric Power Corp. (KEPCO) reported a 70.9% year-on-year drop in operating profit to 1.64 trillion won in the third quarter of 2026, from 5.65 trillion won in the same period last year, according to results reported by The Korea Times, citing Yonhap News Agency. The figures show a sharp decline in the company's profitability during the period, alongside lower sales and higher fuel costs at its generation subsidiaries. A KEPCO spokesperson said lower electricity sales and rising global thermal coal prices affected the results. The spokesperson added that these factors weighed on "our bottom line, along with other factors." The company announced its third-quarter results on 12 November 2026.

KEPCO's third-quarter sales were 26.85 trillion won, down 2.6% from 27.57 trillion won in the corresponding period of 2025, according to figures reported by The Korea Times, citing Yonhap. The revenue decline came alongside the fall in operating profit, but sales dropped less sharply than earnings. The company spokesperson linked the impact on results to lower electricity sales, which constrained revenue during the quarter. At the same time, the spokesperson said global thermal coal prices continued to rise during the period. The combination of falling sales and higher fuel costs pressured the results of a company that relies on its generation subsidiaries to supply electricity.

The combined fuel costs of KEPCO's generation subsidiaries, including Korea South-East Power, exceeded 2.2 trillion won in the third quarter, The Korea Times reported, citing Yonhap. The figure reflects the scale of fuel costs at the subsidiaries' generation units during the period, while a company spokesperson pointed to continued increases in global thermal coal prices. The spokesperson also cited lower electricity sales as a factor affecting results, alongside other factors not named in the statement. The pressures cited by the company therefore affected both sales and generation costs. The published figures in the available reports do not provide further detail on each factor's share of the decline in operating profit.

In the first nine months of 2026, net profit fell 50.4% to 3.63 trillion won from 7.33 trillion won in the corresponding period of 2025, according to results reported by The Korea Times, citing Yonhap. Operating profit for the same period declined 43.2% year on year to 6.56 trillion won, while sales fell 0.8% to 73.17 trillion won. The cumulative results show lower earnings and sales in the year through the end of September, with net profit down by more than half from the same period a year earlier. The cumulative decline in operating profit was also smaller than the drop recorded in the third quarter alone. This provides broader context for the severity of the quarterly results, while keeping them within the performance of the nine-month period.

KEPCO said it would closely monitor energy price fluctuations while continuing to operate under its emergency management system. The company said the system focuses on improving its financial position by cutting costs and strengthening profitable operations. The approach comes as the company reported lower earnings and sales in the first nine months, while combined fuel costs at its generation subsidiaries exceeded 2.2 trillion won in the third quarter. The company said it would continue monitoring energy price fluctuations alongside cost-cutting measures. KEPCO scheduled its third-quarter earnings call for 17:00 local time on 12 November 2026.